Guidewire to buy insurance AI firm Hyperexponential for $1.7B in cash

Insurance software maker Guidewire will acquire the UK startup Hyperexponential, which builds AI agents for underwriting. The deal is expected to close in 2027.

Guidewire said on 27 October that it will buy hyperexponential, a London-based company that makes agentic AI software for insurance underwriting, for $1.7 billion in cash.

Guidewire may pay up to $400 million more if hyperexponential meets recurring revenue targets, which would bring the total to $2.1 billion. The deal is expected to close in the second quarter of Guidewire's fiscal year 2027. The aim is to bring AI agents to work alongside people on underwriting, analysis and pricing. hyperexponential was founded in 2017, is backed by Andreessen Horowitz and Battery Ventures, and says its software supports underwriting across more than $75 billion in annual commercial insurance premium.

According to PitchBook, hyperexponential has raised nearly $90 million, so the sale gives its investors a large return. It is also one more sign that AI agents are moving into regulated, high-value work such as insurance pricing.

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